With financial security as passion number one and saving for
retirement topping the list of financial goals, Gen Y workers
are making plans for a brighter financial future according to new
research from the
Principal Financial Group®.

When setting financial goals, saving for retirement came out on top for
millennial workers (63 percent) followed by paying off student loans (48
percent) and paying down credit card debt (42 percent). These younger
workers report taking
action and positive strides towards making their goals a reality.
Eighty percent say they have a monthly
budget and two-thirds have established an emergency savings fund.

The
Principal Knowledge Center surveyed retirement plan participants
ages 18-34 as part of a company initiative, which focuses specifically
on this generational segment.

“Millennial workers are clearly growing up and taking responsibility
with a passion and keen focus on their financial future. As the second
largest generation to the boomers and in control of more than $2
trillion in assets, these workers have very quickly become an important
group to watch,” said Greg Burrows, senior vice president of retirement
and investor services for The Principal®. “This generation
has seen parents cope with the recession and the impact of not saving
enough. Based on those experiences, they are realistic about the
challenges ahead, but optimistic because they plan to take charge of
their own retirement nest egg.”

The majority of millennials (58 percent) say Social Security benefits
will no longer exist by the time they reach retirement age, while
another quarter of those surveyed believe Social Security will be around
but with reduced benefits. Even without the help of the government, Gen
Y workers (79 percent) feel confident they will be better off
financially when they reach their parents’ current age.

Saving Earlier, Working Later

Almost two-thirds (65 percent) of those responding began saving for
retirement at age 25, yet even by starting early, nearly two-thirds (63
percent) plan to retire after age 65. Another quarter (22 percent) plan
on retiring between ages 60-65. Even though they have started early,
nearly half of those responding (44 percent) have not calculated the
amount of money needed to retire or do not have a set goal. For those
with a set goal, over a third (34 percent) want to save $1 million or
more.

“While there seems to be a general sense that our generation isn’t being
realistic about their financial future, this research shows we are savvy
when it comes to money and investing. We’ve started saving earlier than
past generations and recognize we may need to work longer in order to
meet our financial goals,” said Jase Johnson, voice of the young
consumer senior business strategist for The Principal. “One way for Gen
Y to stay on track is by creating a financial plan and a calculated
retirement income and savings goal.”

Putting a Price on American Dream

In order to achieve the American Dream, Gen Y workers estimate it will
cost $3.1 million in today’s dollars. According to Gen Y workers, their
version of the American Dream includes being financially secure (77
percent), having freedom (64 percent) and owning their own home (63
percent). Financial independence, marriage and children top their list
of dreams, followed by having a career and starting a family.

The voice of the young consumer initiative at The Principal is a
multi-generational team of employees charged with identifying new ways
to reach the evolving consumer. They accomplish this through a
collaborative partnership with leaders and employees at The Principal.
In addition, the team shares knowledge with employees of The Principal
on evolving Gen Y consumer and employee habits and identifies challenges
evolving consumers face with financial services. This research helps
inform this initiative.

This Principal Financial Group Gen Y study was conducted online within
the United States between September 9 and September 18, 2013 among 591
employees. Ages for participants ranged from 18-34. Those participating
in the survey work for a company that currently has a workplace
retirement plan with the Principal Financial Group.

About the Principal Financial GroupThe Principal Financial
Group® (The Principal®)1 is a global
investment management leader offering retirement services, insurance
solutions and asset management. The Principal offers businesses,
individuals and institutional clients a wide range of financial products
and services, including retirement, asset management and insurance
through its diverse family of financial services companies. Founded in
1879 and a member of the FORTUNE 500®, the Principal
Financial Group has $483.2 billion in assets under management2
and serves some 19.4 million customers worldwide from offices in Asia,
Australia, Europe, Latin America and the United States. Principal
Financial Group, Inc. is traded on the New York Stock Exchange under the
ticker symbol PFG. For more information, visit www.principal.com.

1 “The Principal Financial Group” and “The Principal” are
registered service marks of Principal Financial Services, Inc., a member
of the Principal Financial Group.